#PayPal famously split from eBay Inc. last year leaving many to wonder what their next move would be. Over the years the online-payments pioneer had picked a few unwise fights with heavyweights such as #Visa and #MasterCard. But there finally seems to be a change of strategy.

PayPal Joins the Fold

PayPal sealed deals with Visa and MasterCard that will soon allow customers to select their credit or debit cards as default payment methods rather than just their bank account or PayPal balance.

By calling a truce on their battles with the major card issuers in the industry, it seems the initiative is to promote PayPal as a universally accepted method of payment both online and offline.

It’s refreshing to see #banks, credit card companies, and PayPal putting their differences to one side. Traditional banking had made no secret about being resentful of PayPal’s free bank transfers and heavily promoting its online payment system over conventional banking.

The recent deals seem to satisfy all parties as they realize they are all stronger together than apart. Ultimately, PayPal will enjoy lower fees and obtain a visibility in physical stores for quick and easy payments. MasterCard and Visa will get their hands on customer data they were previously locked out of. But more importantly, they should see a massive increase in online and #mobile payments.

The strategic decision by PayPal enhances their reputation as a universally accepted payment method while card issuers receive much-needed help with their mobile payments initiatives.

Payment Practices Upheaved

PayPal is encouraging its customers to pay using their service as a mobile wallet. The blurry line between online checkouts and those we find in physical shopping malls is close to being torn down. In many ways, 2016 is proving to be a watershed moment regarding payments as users begin to embrace smartphone and contactless payment cards.

Numerous reports suggest the recent deals could subject PayPal to losses in the short term. But it’s clear the online payments giant is playing the long game here. With 157 million active account holders worldwide and widely known as one most common online payment methods, getting Visa and MasterCard on board to pursue the high street is a very shrewd move.

All consumers are essentially carrying around a super computer in their pockets. The ability to book a restaurant table, cab or accommodation on the other side of the world with a few taps of a smartphone screen has changed everything.

The bottom line is that all consumers now have a simple set of 21st-century demands. The choice to pay when, where and how we want in a seamless, simple and secure method. The easier companies make exchanges, the faster they will happen.

The biggest obstacle to widespread mobile payments is industry fragmentation. Platforms such as Apple Pay, Android Pay, and Samsung Pay are all heavily reliant on devices and software. This is not the way it should be. If you replace your smartphone, it should not affect how you pay for items online or offline.

Bluntly put, people want a universal platform that will make it easy to share and spend money. Maybe other businesses will begin to follow the positive example set by Visa, MasterCard, and PayPal.

Digital Transformation Shows No Signs of Abating

The simplification and personalization of everything shouldn’t be labeled disruptive. Technology is being interwoven seamlessly and invisibly into our daily lives. If anything, it’s the opposite of disruption. It’s imperceptible.

Businesses that team up in this way and merge their forces have a better chance of underpinning consumer’s lives from the ground up. This unity is a point in case.

#Uber announced yesterday that the #Instant Pay option for its drivers has been extended to nearly all U.S. #debit#cards, with the help of #MasterCard Send and #Green Dot, the operator of the mobile-first bank GoBank. “The expansion offers frictionless, elegant service to Uber, which is the poster child for the on-demand market,” said GreenRead MoreBank Innovation

PayPal and Visa jointly announced a #deal last week giving PayPal access to Visa payment rails at the point of sale, and giving Visa cards preferential treatment within the PayPal environment. The deal is exclusive for 12 months, Visa CEO Charlie Scharf noted. The world found out yesterday what that exclusivity means for #MasterCard:Read MoreBank Innovation

#MasterCard has partnered with #Microsoft to #integrate its #cloud-based payments platform with the tech giant’s cloud-based ERP solution, the companies said this morning. The payment platform, Simplify Commerce, will allow the more than 20,000 Microsoft Dynamics users accept online and call center payments, as well as provide automatic updates on securityRead MoreBank Innovation

#MasterCard has selected diamond provenance #startup#Everledger for its summer startup #incubator. One of seven companies to join the 2016 Start Path Global program, Everledger will receive assistance from MasterCard to scale its operations and enter new markets. The startups will begin the program by working with MasterCard during a week-long immersion in London, followed [&#8230;]fintech techcrunch

Apple Pay allows MasterCard cardholders to use their cards where and how they want with a seamless payment experience. For consumers and merchants alike, that means that every purchase made with Apple Pay will offer the security, benefits and guarantees of any MasterCard transaction. MasterCard is working with several #banks and card issuers to enable cardholders to use their MasterCard credit or prepaid cards with Apple Pay.

Security and privacy is at the core of Apple Pay. When you use a credit or prepaid card with Apple Pay, the actual card numbers are neither transferred to Apple, nor stored on the device or on Apple servers. Instead, a unique Device Account Number is assigned, encrypted and securely stored in the Secure Element on your device. Each transaction is authorized with a one-time unique dynamic security code.

Image source: Apple.com

&#8216;Apple Pay allows consumer to pay easily and securely, wherever contactless MasterCard cards are accepted at POS or Apple Pay is accepted for in app payments, be it in Switzerland or across the globe,&8217; said Guido Mueller, Country Manager Switzerland. &8216;MasterCard was the first in the world to offer contactless and mobile payment solutions, and the Swiss are rapidly adopting #this well-established global standard for convenient, secure payment with a tap. In Switzerland, at more than 100,000 locations including Migros, Coop or Kiosks, more than 3 million contactless purchases are made every month, up 100% compared to the previous year[1] .

With this clear shift in payment preferences, we are excited that MasterCard cardholders will soon be able to make payments in store or in app with Apple Pay, knowing that every purchase brings the unrivaled ease and security of NFC payments to mobile payments, together with all the same guarantees and benefits they&8217;ve come to expect from using their MasterCard.&8217;

Apple Pay is easy to set up and users will continue to receive all of the rewards and benefits offered by their card of choice. In participating stores, Apple Pay works with iPhone 6s, iPhone 6s Plus, iPhone 6, iPhone 6 Plus, iPhone SE and Apple Watch. Online shopping in apps accepting Apple Pay is simple, without needing to repeatedly fill out lengthy account forms or type in shipping and billing information. When paying for goods and services within apps, Apple Pay is compatible with iPhone 6s, iPhone 6s Plus, iPhone 6, iPhone 6 Plus, iPhone SE, iPad Air 2, iPad mini 3, iPad mini 4 and iPad Pro.

The payment networks are coming together to work on a #standard for speedier EMV transactions. As part of that effort, #MasterCard is making its M/#Chip Fast #technology “available to all parties” involved, including other payment networks, acquirers, and processors, Chiro Aikat, senior vice president of product delivery, told Bank Innovation.Read MoreBank Innovation